The national guide covers specialty personal coverages: personal umbrellas, inland marine floaters, watercraft, mobile homes and flood. Indiana's state questions in this area focus on mine subsidence insurance (IC 27-7-9), which is offered in Indiana's coal regions, along with the flood insurance basics.

National concepts in brief

• Flood is excluded from homeowners policies. It is bought through the National Flood Insurance Program or private flood markets (42 U.S.C. 4012a).
• A personal umbrella adds liability limits above the auto and homeowners policies. Indiana insurers need not offer UM/UIM in an umbrella (IC 27-7-5-2(h)).
• Personal inland marine floaters cover valuables beyond the homeowners policy's special limits.

Mine subsidence insurance (IC 27-7-9)

What it covers:

• Mine subsidence is the collapse of an underground coal mine that damages a structure. Earthquakes, landslides, volcanic eruptions and the collapse of storm or sewer drains are not included (IC 27-7-9-3).
• Coverage is available only in counties the Department of Natural Resources identifies as in the Illinois Coal Basin, or underlain by coal-bearing rock (IC 27-7-9-6).

How it is sold (IC 27-7-9-8):

• The insurer must tell the prospective policyholder that mine subsidence coverage is available. It is included if the insured elects it.
• The premium is shown separately and follows the level the commissioner sets.

What it pays:

• The actual cash value of the loss, minus a deductible of 2% of the structure's insured value (at least $250, at most $500).
• Up to $15,000 of additional living expense, if no other part of the policy pays it. The insured may waive this part.
• All damage from one event, or from continuous events, counts as one occurrence (IC 27-7-9-8.5).

The fund (IC 27-7-9-7, 27-7-9-9):

• The commissioner runs the mine subsidence fund.
• Insurers cede 100% of the coverage to the commissioner, up to $500,000 per structure. They keep a ceding commission and send the rest of the premium to the fund.

Prior and unrepaired damage:

• An insurer must decline coverage on a structure showing unrepaired subsidence damage until it is repaired (IC 27-7-9-8).
• Insurers needn't look for prior damage unless told about it, and aren't liable for damage that happened before the policy (IC 27-7-9-8.5).

Common exam traps

• Mine subsidence covers coal mine collapse only, not earthquakes or sewer collapse.
• The deductible is 2% of insured value, between $250 and $500. Additional living expense is up to $15,000.
• The fund reinsures 100% of the coverage, up to $500,000 per structure.
• Coverage must be offered. It is included only if the insured elects it.